|Why are the first casualties of the current climate in today’s automotive marketplace time-tested and proven money-making policies and procedures? Why do we allow ourselves to stop doing the things that are designed to make us more front- and back-end profit at the very time when we need the most profit from every deal?|
Some of these casualties are: any one or all 10 steps to the sale, a quality walk-around, a quality service tour, walking the new and used inventory daily, and negotiating from list.
According to Anthony, the system he designed to make the program successful is simple. He subscribes to a service, that for 10 cents per name allows him to access a list (which is updated daily) of bankruptcy court filings. Daily, he simply downloads the list of new filings, which he then sends a direct mail letter to each day. By doing this daily, it creates a steady flow of leads that can be worked at a consistent pace.
Soldiers rely more than anyone on regimented processes and procedures because their lives are dependent upon them. Soldiers have always and will always dig foxholes to provide them safety. Why? Because they work!
The dealership sales floor may not be a life-and-death battlefield but some dealers are telling me that either business picks up or they are not going to make it financially. Financial life and death for them -- you bet!
You must realize that everyone has a job to do. If everyone does his or her job well, everyone prospers. Here are some examples:
Job #1: Advertising – Increasing Your Up Count
The trick here is to identify the successful dealers in your area and model your advertising to theirs. What makes their advertising work so well? What do they do differently? What is their advertising strategy? Who is their advertising company? There is no reason to reinvent the wheel; just learn from other people’s successes.
Job #2: Desk Control – Selling Those Ups More Frequently
Job #3: F&I Production – Maximizing Income on Sold Ups
First, look at the quality of the deals that are coming to finance; fewer customers equate to more challenging deals. The sales department works very hard to make deals, and once made, they don’t want anything to jeopardize them. This is why we see more buyer's orders faxed to credit unions and outside banks in these times. Any and all shortcuts made in the name of deliveries are cutting directly into your revenue. F&I managers must get a quality turn to the finance office if you are to maximize every opportunity.
Now is not the time to allow the processes in F&I to falter. Menu selling has been and is the answer to get the most revenue out of your F&I department.
Second, the F&I manager’s attitude must be positive at all times when they are in front of a customer, no exceptions. What would you guess gives a higher profit per vehicle retail (PVR), a positive attitude or a negative attitude? The right attitude and processes are guaranteed to maximize your income in the F&I department.
Job #4: Easy Profit – Less is not More, More is More
What if the closing percentage is just 20 percent? What would be the bottom-line increase to your service R.O. hours and income per year? How would your customer feel about your customer service? The Windshield Wiper Close allows the service advisor/salesperson to upsell your other products. Very profitable dealerships are the ones that are training their service advisors to be service salespeople as well.
Allow and enable your troops/sales force to achieve extraordinary things in the next year. Allow them to make your dealership the one everyone is trying to model their dealerships after. Your dealership's advertising, front and back profits and a well-run, income-maximizing service department will make you the model for dealers in your area, as well as at your 20 group (also a great source of ideas).
Attention to the Three P’s when times are slow can deliver good results and most certainly as our business environment improves—great results!
KAR Auction Services has consolidated its Recovery Database Network management team following the company’s acquisition of Clearplan.